Are you coming to a Fall Area Meeting?

NCCBI staff members are packing their bags and getting ready to hit the road for a whirlwind trip across the state the next two months during the association’s annual Fall Area Meetings. We’re looking forward to seeing you at one of the 19 events and we hope you bring a prospective member along to learn more about your state chamber of commerce.

The Area Meetings are a great opportunity for members to tell the NCCBI staff what’s on your mind, to make suggestions for association activities and to hear brief reports on what we’ve done for you in the past year in Raleigh and Washington. They also offer a chance for you to chat with Sue W. Cole of Greensboro, the U.S. Trust Company of North Carolina executive who is the first woman chair of NCCBI.

Brochures with complete information on the events and registration cards have been mailed to all members on two occasions. Please fill out the registration card so we’ll have an accurate count for the meal and a name badge waiting for you. Members also can register online through the NCCBI web site at http://nccbi.org/2003.Area.Meeting.Form.htm.

The first stop on the Area Meeting tour comes Sept. 2 when the NCCBI staff pulls into Wilson for a steak cookout at the Wilson Chamber of Commerce. We’ll move on down the road to Elizabeth City the next day for a luncheon at Pine Lakes Country Club before returning to Raleigh on Sept. 4 for the Triangle Area Meeting at the Angus Barn. Please consult the schedule below to make sure you have already marked your calendar for the event in your town.

There is no charge to attend an Area Meeting. All the costs are paid through the generous support of local hosts, who will be acknowledged and thanked at each event.

NCCBI offers legal seminars
to protect business owners
from damaging lawsuits

Your association wants to help you build a better workplace for your employees while also protecting you from damaging lawsuits. To that end, NCCBI is pleased to invite you to attend one of the four seminars we’re staging this fall on the latest developments and complexities in labor and employment law. NCCBI is staging these seminars in partnership with the respected law firm of Haynsworth Baldwin Johnson & Greaves. The seminars are geared toward business owners and the attorneys and CPAs who advise them.

The day-long seminars will be offered Oct. 28 in Greenville, Oct. 30 in Raleigh, Nov. 4 in Charlotte and Nov. 6 in Greensboro. Registration is $225 for NCCBI members, $250 for non-members. Seminar attendees will receive expert instruction on complying with such complex topics as:
  Wage and hour issues;
  Discrimination;
  Family and Medical Leave Act;
  Overtime and recordkeeping;
  Americans with Disabilities Act;
  Negligent hiring, and
  Employment relationships.

North Carolina Chief Justice I. Beverly Lake Jr. will deliver the keynote address at the Raleigh seminar. U.S. District Court Judge Malcolm J. Howard of the Eastern District of North Carolina will speak at the Greenville seminar. U.S. District Court Judge Graham C. Mullen of the Western District of North Carolina will speak at the Charlotte seminar. U.S. District Court Judge Frank W. Bullock Jr. of the Middle District of North Carolina will speak at the Greensboro seminar.

The main presenters at the seminars will be Haynsworth Baldwin attorneys Thomas A. Farr and Gretchen W. Ewalt, co-authors of NCCBI’s new book, “The Employment and Labor Law Resource Guide.”  Seminar attendees will receive a free copy of the book, a $112 value, plus a notebook complete with copies of all the texts and graphics from the seminar.

”NCCBI is pleased to offer this high-quality educational seminar,” said President Phil Kirk. “The subjects are very timely and important and the presenters are experts in their field. Add the quality of the luncheon speakers and we hope you will agree this is a bargain you cannot afford to miss.”

Please watch your mail for the registration brochure pictured above. For more information on the seminars, and to register online if you choose, go to http://www.nccbi.org/ecommerce/.

Seminar Agenda

  8-9 a.m. Registration

  9-9:05 a.m. Welcome by NCCBI President Phil Kirk (Greenville and Triangle); NCCBI Chair Sue W. Cole (Greensboro); NCCBI First Vice Chair Barry Eveland (Charlotte)

  9:05-9:10 Introduction of Program by Tom Farr

  9:10-10 a.m. Focus on Employee Discharges: Tom Farr on "Ten Mistakes Plaintiffs' Lawyers Hope You Make."

  10-10:45 a.m. Focus on Workplace Audits: Gretchen W. Ewalt on "How to Prepare for Government Inspectors."

  10:45-11 a.m. Break

  11-11:50 a.m. Focus on Wage and House Issues: "Emerging Issues under the Fair Labor Standard Act and the N.C. Wage Hour Act."

  12-1:15 Luncheon and keynote address

  1:30-2:15 p.m. Focus on Health Care Administration: "Surviving the HIPAA and COBRA minefields."

  2:15-3 p.m. Focus on Downsizing Your Workforce: “Avoiding wrongful discharge claims while managing a reduction in force."

  3:15-4 p.m. Focus on Intellectual Property: "Computers, trade secrets, covenants not to compete and employee privacy."

 4 p.m. Adjourn

Please welcome these new members
Companies that have joined or rejoined NCCBI in May, June and July, along with the name of the key executive at each company, include: aaiPharma, Bill Ginna, Wilmington; Andy's Cheesesteaks & Cheeseburgers, Kenney Moore, Mt. Olive; Association of Community Pharmacists, William C. Rustin Jr., Raleigh; Benson Area Chamber of Commerce, Loretta Byrd, Benson; Bob Timberlake Inc., Dan Timberlake, Lexington; Bobbitt Design Build, Jon Peeples, Raleigh; Bombardier Recreational Products, William Johnson, Spruce Pine;

Cary Oil Company Inc., Don Stephenson, Cary; Case Consulting Services Inc., Ben Case, Durham; CD Anderson Associates LLC, Cynthia Anderson, CPA, Raleigh; CH2M Hill Inc., James Laughlin, Charlotte; Charlotte Research Institute UNC-Charlotte, Deborah Clayton, Charlotte; City of Salisbury, David W. Treme, Salisbury; Clean East Associates Inc., M. Todd Howard, Kinston; Crawford Properties, Hon. James W. Crawford Jr., Henderson;

Doggett Associates LLC, Ron E. Doggett, Raleigh; East Carolina Community Development Inc., Keith Walker, Beaufort; First Piedmont Company, Scott Lail, Hickory; Five Star Staffing Inc., Barbara M. Kuley, Raleigh; From the Ground Up!, Kim N. Shope, Raleigh; Haywood County Chamber of Commerce, Bob Hill, Waynesville; Human Resource Solutions Inc., Gregory E. Mayo, Skyland; JB's Scuba Instruction & Charters, Janet M. Beason, Wilmington; Lumbee Guaranty Bank, Larry R. Chavis, Pembroke; McKinney & Silver, Lisa Hughes, Raleigh; Mid-Atlantic Fasteners, Mike Mitchell, Greensboro; MountainBank, J. W. Davis, Hendersonville;

N.C. Center for the Advancement of Teaching, Mary McDuffie, Cullowhee; N.C. Department of Agriculture & Consumer Services, Ron Fish, Raleigh; National Technical Honor Society, Allen Powell, Flat Rock; N.C. East, Joanna Thompson, Greenville; N.C. Museum of History Associates, Dorothea L. Bitler, Raleigh; N.C. Science, Mathematics and Technology Education Center, Samuel H. Houston, RTP; Office of Gene Rogers, Hon. Gene Rogers, Williamston; Office of Irwin Belk, Irwin Belk, Charlotte; Office of Margaret Dickson, Hon. Margaret Dickson, Fayetteville; Office of Sandra Ray Criner, Sandra Ray Criner, Wilmington; Piedmont Center Associates, Bradley Lail, Hickory; PPD Pharmaceutical Product Development, Meg Davenport, Wilmington; PPG Industries Inc., Randy Erwin, Chillicothe; Pro Inc., Cathy Scott, Roanoke Rapids;

Rockingham Community College, Robert C. Keys, Wentworth; Rocky Top Hospitality, S. Elizabeth Hyatt, Raleigh; Rufty Homes Inc., Jon Rufty, Cary; Shook & Tarlton Investment Co., James V. Tarlton Jr., Hickory; State Watch, Robert F. Dusablon, Raleigh; Sterling Transport, Hinton Hugh Jr., Lakeview; The East Group PA, Tony Khoury, Greenville; The Fayetteville Observer, Charles Broadwell, Fayetteville; The Hon. Ronald L. Smith, Hon. Ronald L. Smith, Newport; The Sanford Holshouser Law Firm, Ernest C. Pearson, Raleigh; Tri-County Insurance Agency Inc., Scott Minton, Hickory; Triangle Transit Authority, John Claflin, RTP; US LEC Corp., Wanda Montano, Charlotte; Vaughn Perkinson Ehlinger Moxley & Stogner LLP, R. C. Vaughn Jr., Winston-Salem; Wal-Mart Stores Inc., Matt Noland, Bentonville, Ark.; Zimmer and Zimmer LLP, Herbert J. Zimmer, Wilmington.

Business Hall of Fame ceremonies coming up Nov. 13
Four outstanding business leaders from around the state will be inducted into the North Carolina Business Hall of Fame on Nov. 13.  Sponsored by Junior Achievement and NCCBI, the North Carolina Business Hall of Fame will induct the following laureates as the class of 2003:

 Annabelle L. Fetterman (left) of Clinton, former CEO of Lundy’s Packing.
 Lewis R. Holding of Raleigh, chairman of the board of First Citizens Bank.
 Leon Levine of Charlotte, founder of Family Dollar Stores.
 Ed O’Herron of Charlotte, former CEO of Eckerd Drugs.

The North Carolina Business Hall of Fame was established in 1988 to recognize business leaders who significantly contributed to building this state’s economy and who provided outstanding community and statewide service.  Inductees into the Hall of Fame must be retired from their organization or be at least 70 years of age. At present, 64 men and women have been inducted into the Hall. The North Carolina Business Hall of Fame dinner and awards ceremony will be held Thursday, Nov. 13, 2003 at The Westin Charlotte. A reception will be held from 6:15 until 7:00 p.m. followed by the dinner and awards ceremony at 7:00 p.m. Table prices are as follows: For a table of eight,  $1,800 until Sept. 10; $2,000 from Sept. 11 through Oct. 31 and $2,250 from Nov. 1 – Nov. 7.  Single tickets are available as follows: $225 each until Sept. 10; $250 each from Sept. 11 through Oct. 31.  No single tickets will be sold after Oct. 31. Sponsorship opportunities are also available. To make your reservation or for more information, please contact Shannon Martin, Junior Achievement of the Carolinas Inc., at 704-563-4855.

Young Executives to discuss balancing family and career
The NCCBI Young Executives Forum will gain additional insight on balancing family and career and will learn more about the economy in the Charlotte area at its meeting in September. The Forum will meet from 10 a.m. to 2 p.m., Friday, Sept. 5, at the Tower Club in downtown Charlotte.  Cost is $50, and the meeting is open to all NCCBI members who are 50 years old and younger.  Speakers will include Sharon Decker, an NCCBI board member who is president of Doncaster, the largest direct-selling division of the women's apparel manufacturer the Tanner Companies.  She will provide tips on climbing the corporate ladder as well as juggling family and professional responsibilities. A panel will focus on Charlotte's diverse economy and how the region has become a booming metropolis that's known throughout the world. Panelists will include David Cline, chair of the Charlotte Airport Advisory Board and past chair of The Carolina Partnership; Scott Cooper, senior manager of promotions and media relations for Lowe's Motor Speedway; and Tim Newman, president of Charlotte Center City Partners. After the meeting, young executives will have an opportunity to play golf at the SkyBrook golf course (designed by renowned golf course architect John LaFoy) at an extremely reduced rate ($29, which is the responsibility of each player). Sign up today for the meeting and the golf excursion! Join young professionals from across the state at this meeting full of information and insight. For registration information, contact Debbie Twiford at the NCCBI office at 91-836-1404 or dtwiford@nccbi.org.


Legislative Issues

Senate will reconvene next month to explore economic development
The state Senate is scheduled to return to Raleigh on Sept. 15-19 to consider economic development legislation and medical malpractice reform. That’s the dates specified in the adjournment resolution the House and Senate adopted just before adjourning last month. Because the House will not be in session at the same time as the Senate in September, no bills can be passed at that time. Both houses of the legislature will be in session beginning next May 10 for the budget-adjusting short session. Although it was not a part of the adjournment resolution, the question remains whether all legislators will have to return to Raleigh this fall to consider new legislative district maps. A court decision handed down in July mandates lawmakers to redraw House and Senate district boundaries before the next elections. A special session will probably be called to address this issue. Senate President Pro Tem Marc Basnight hasn’t discussed specifically which economic development topics he thinks the chamber should consider.

Governor signs measure saving employers millions in UI premiums
A measure strongly backed by NCCBI that will save employers more than $100 million in unemployment insurance premiums was signed into law Aug. 12 by Gov. Mike Easley. The measure, H. 1241 ESC Surtax Delay, postpones reinstatement of the 20 percent unemployment insurance surtax for one year. The act affects the 2004 tax year. The surtax was scheduled to go into effect Jan. 1 due to the balance in the unemployment reserve fund falling below $163 million. The bill delays the imposition of the surtax until the balance in the regular unemployment insurance fund reaches $500 million. Rep. Paul Luebke (D-Durham) introduced the legislation. Rep. David Miner (R-Wake), Rep. Gordon Allen (D-Person), Sen. John Kerr (D-Wayne) and Sen. David Hoyle (D-Gaston) were also key proponents of the bill. “This money can be plowed back into the economy to create jobs and reduce the demand for unemployment insurance,” the governor said at the bill-signing ceremony.

Easley quietly signs economic development measure
With little fanfare and without a bill-signing ceremony, Gov. Mike Easley recently signed into law one of the major economic development initiatives from the last General Assembly session. S. 725 Local Option Project Development Financing sets up a November 2004 referendum on amending the state constitution to allow local governments to borrow money to finance the public portion of economic development projects. Typically, this might be a parking deck associated with a downtown redevelopment. Already used by 48 states, project development financing uses the expected growth (or increment) in property tax revenues from a designated geographic area to finance bonds used to pay for developments calculated to spur growth in that district. The measure specifies that the land area of the district cannot exceed 5 percent of the land area of the county or city issuing the bonds. The legislation also requires creation of a “development financing plan” for the district, outlining the projects to be financed, how the bond proceeds will be used, the benefit to the community, a commitment to adhere to a wage standard (with some exceptions), and an environmental review. The Local Government Commission must approve the districts and plans. They must also find that the bond issue is necessary to secure significant new development and that the development would not likely occur without the bond. Bond proceeds may be used to finance parking facilities, sewer systems, solid waste disposal systems, storm sewers, flood control, water systems, street improvements, public transportation facilities, land development, and redevelopment. Bonds are secured by a special fund of property taxes paid on the increased valuation in the district. Additional security can be provided by a pledge to sell public property in the development district. Local units can also pledge other revenues as long as it does not constitute a pledge of that jurisdiction’s taxing power. NCCBI and local chambers of commerce strongly supported passage of the legislation. Groups supporting the legislation are now working on plans to get the referendum passed in November 2004.

Economic Development

Biotech gets a major boost from Golden LEAF
The Golden LEAF Foundation has committed up to $60 million to launch a program to train North Carolinians for the emerging biotechnology industry. The action catapulted North Carolina to the top of the list of state’s attempting to make biotechnology the basis for future job creation and economic growth.
 
The initiative totals $64.5 million, with the biotech industry contributing $4.5 million. There are three main players. N.C. State University in Raleigh will receive $36 million to build and equip a center to train workers. N.C. Central University in Durham will receive $19.1 million to establish graduate and undergraduate degree programs in biotechnology. And the N.C. Community College System will receive $9.4 million to recruit and train workers in local communities and serve as a feeder system to programs at N.C. State and N.C. Central.

"The North Carolina Community College System is pleased to have the opportunity to play an important role in the biotechnology future of North Carolina,” said Martin Lancaster, president of the community colleges. He said the $9.4 million awarded to the community colleges “will fund training for more than 65 percent of the future biotechnology workers of the state. Many of these people in mostly rural parts of North Carolina have depended on tobacco or the tobacco industry for their livelihood and are in critical need of new opportunities.  This funding and the training community colleges will provide will give them that opportunity.”
 
Lawrence Davenport, who chairs the Golden LEAF Board, declared the initiative “a model for the nation” and said that it will result in North Carolina’s having the best-trained biotechnology workforce in the United States. “We already were in a favorable position to become a national center for the biotech industry, and this action should cause companies in both the research and development and manufacturing stages to look to North Carolina first,” Davenport said.

North Carolina not only has taken a major hit because of the decline of the tobacco industry, but also is losing thousands of textile and furniture manufacturing jobs because companies are taking jobs abroad. Golden LEAF administers half of the money received by the state from its settlement with cigarette manufacturers. It focuses on helping the state to make the transition from a tobacco-based economy and creating new job opportunities in tobacco-dependent areas.


Kirk urges quick federal action to help textile industry
In a recent letter to President Bush, NCCBI President Phil Kirk urged him "to take strong action regarding the immediate threats from China" in regard to textile trade issues. "The textile industry has suffered tremendously in the past decade with massive job losses and plant closings," Kirk wrote. "You have both the power and the responsibility to prevent the near total destruction of this important industry." Kirk referred to the July 7 letter to the president from 15 textile leaders that outlined actions that the president should take. The group specifically asked the president to take three steps -- self-initiate use of the China Textile Safeguard, reject any pro-China tariff TPL's in the Central American Free Trade Agreement and other free trade agreements, and maintain U.S. textile tariffs in the Doha Round of trade talks. Kirk told President Bush in the letter that NCCBI's members are not generally "alarmists or pessimists," but warned that unless strong action is taken, the textile industry "may no longer exist and another million jobs will be lost." Continuing, he wrote, "Manufacturing in all sectors of our economy faces huge challenges, and the federal government needs to be a helpful partner with us in the economic recovery." Kirk added, "NCCBI supports free and fair trade, but the federal government needs to enforce the current laws and regulations while looking for additional fair ways to protect North Carolina jobs."


 North Carolina’s incentive program to attract filmmakers is constitutional, a Wake Superior Court judge has ruled in dismissed a lawsuit by the Washington, D.C.-based Institute for Justice. Judge Narley Cashwell dismissed the challenge to a Commerce Department program that allows movie production companies to receive a cash grant of up to 15 percent of the money they spend in the state, up to $200,000 per production.

State Government

Officials finally close the books on a tough budget year
It has taken several weeks, but officials finally have finished at least a preliminary review of the state’s financial position as of the end of the fiscal year on June 30. The numbers in the chart below, supplied to NCCBI on Aug. 12 by the State Controller’s Office, largely confirm what we’ve reported to you earlier – that the state narrowly avoided red ink at year-end and did so mainly because it booked $136.9 million in a one-time federal grant. Counting that money, the state took in $14.25 billion over the year, about $84 million less than originally budgeted. Budget cuts imposed by Gov. Mike Easley over the year kept the books balanced.

Individual income taxes are the obvious weak spot on the state’s balance sheet, at about $7.1 billion compared to an anticipated $7.27 billion. In the 2001-02 fiscal year, individual income tax collections amounted to nearly $7.3 billion.

Corporate income and franchise taxes are two bright spots in the year-end report. In the chart below, corporate income taxes are reported net of transfers to other accounts. On a gross basis, the state collected $886.4 million in corporate income taxes in the year ended June 30. That compares to $660.2 million in the prior year, a jump of more than 34 percent.

Including cuts imposed by the governor during the year, total state expenditures amounted to $14.355 billion, according to the Controller’s figures. That’s down from $14.53 billion in the 2001-02 year.


State issues air quality permit for FedEx hub at PTI
The N.C. Division of Air Quality (DAQ) on Aug. 8 issued a critical permit for the proposed FedEx cargo hub at Piedmont Triad International Airport. DAQ issued the transportation facility permit to the airport authority for modifications associated with the air cargo sorting and distribution facility, including the construction and expansion of runways, taxiways and roadways. The air permit is needed to ensure that the project would not cause local violations of the air quality standard for carbon monoxide. In developing the permit for the facility, the DAQ analyzed computer modeling of emissions from aircraft, ground support vehicles, cars and trucks, and other sources. To obtain a permit, the air modeling had to show that the project would not cause carbon monoxide violations. The division also considered comments it received in letters and at a public hearing on June 23 in Greensboro. Many of the public comments, although expressing legitimate concerns, were beyond the scope of the air quality permit. The DAQ has no regulatory authority over issues such as noise, traffic, the location of facilities, or the type of airport expansion. Local governments are responsible for such planning and zoning issues. In a separate matter, the DAQ in 2001 analyzed the airport's General Conformity Analysis with regard to the air quality standard for ozone. This analysis concluded that the project would conform to the area's current emissions budget for ozone.

 
Environmental Issues

Duke completes first phase of modernizing coal-fired plant
Duke Power has completed the first phase of its massive Selective Catalytic Reduction or “SCR” project at Belews Creek Steam Station that will reduce the power plant’s nitrogen oxide emissions by about 85 percent. The project will be completed in 2004 and is the largest of its kind in the nation. It represents an investment of more than $450 million and had a peak construction work force of more than 2,000. It is the Triad region’s largest construction project and one of the largest in North Carolina over the past decade.  

“The Duke Power team is very pleased to bring Belews Creek Unit 1 back on line with the new SCR systems fully operational,” said Bill Hall, Duke Power’s executive vice president of fossil/hydro generation. “Belews Creek is one of the nation’s most efficient coal-fueled power plants and is one of the reasons our rates are 21 percent below the national average and among the lowest in the Southeast.

The SCR project consists of two 30-story steel structures located next to the plant's two units. These structures contain honeycombed ceramic equipment that will change nitrogen oxide emissions into harmless nitrogen and water. The process is similar to that used in automotive catalytic converters. What makes the Belews Creek project unique is its sheer size and engineering challenges. These have ranged from how to supply on-site parking for the massive work force to the design and construction of customized structural reinforcements that ensure the 30-story SCR structure can manage the effects of wind without affecting the reliability of power plant operations.

The SCR project began in August 2001 and has generated thousands of construction jobs. It also required the service of the nation’s largest crane that previously was stationed at the World Trade Center immediately following the Sept. 11 attack. The 450-foot crane remains at the site and is working on the construction of Unit 2’s SCR project, which is well underway and slated for completion next summer.

The Belews Creek SCR project is part of Duke Power’s federal Clean Air Act compliance efforts that will reduce the company’s nitrogen oxide emissions 75 percent below 1998 levels by summer 2004. Duke Power will invest an additional $1.5 billion to reduce nitrogen oxide and sulfur dioxide emissions far below federal limits by 2013 to comply with North Carolina’s Clean Air Plan, which was signed into law in June 2002 with the company’s full support.

Belews Creek Steam Station has a generating capacity of 2,240 megawatts and is located near Walnut Cove in Stokes County. The plant began operation in 1974 and can serve more than 2 million homes. 

Transportation

Missing link of Interstate 26 opens in Madison County
State officials celebrated the completion last month of Interstate 26 in Madison County and the opening of North Carolina's newest welcome center. The nearly nine-mile project from Mars Hill to the Tennessee state line completes the final link in a four-lane highway from Columbus, Ohio, to Charleston, S.C. During the ceremony, Gov. Mike Easley also dedicated the 12-mile section of I-26 through Madison County as the ''Liston B. Ramsey Freeway'' in honor of the late legislator from Marshall. Because of the potential for inclement weather through the area, the project includes a state-of-the-art fog detection system and the 220-foot high Laurel Creek Bridge is equipped with an anti-icing system. There are also two emergency crossovers for emergency vehicles, and a warning system advises motorists when an emergency vehicle is entering traffic. DOT began construction on this $230 million project in 1996, which included $6.1 million for the 5,688-square-foot welcome center. More than 37 million cubic yards of rock and dirt were excavated to build the highway.

  Gov. Mike Easley released a list of 28 highway projects costing about $27 million that will be funded through the N.C. Moving Ahead legislation he signed into law. The law allows the state to transfer $700 million in bonds approved by voters for new highways to be used for highway maintenance and improvement projects. Under the program, the Department of Transportation will invest $630 million in highway preservation and modernization and $70 million in public transportation from the Highway Trust Fund’s cash balances. The most expensive of the 28 initial projects is a nearly $2 million improvement to 10.6 miles of N.C. 197 in Yancey County from U.S. 19 East to the Mitchell County line. You can see the complete list of initial projects  by clicking on: http://www.governor.state.nc.us/News/PressReleases/Attachments/Moving%20Ahead%20projects.pdf.

  A West Virginia company was awarded a $67 million contract to construct the next leg of Raleigh’s Outer Loop. Vecellio & Grogan will construct the leg of I-540 from east of U.S. 1 (Capital Boulevard) to U.S. 64 east of Knightdale. Work is scheduled to begin on this segment next month. The entire project is anticipated to be complete in Spring 2006.

  The N.C. Board of Transportation has awarded a $21.4 million contract to construct the final section of the U.S. 17 Jacksonville Bypass in Onslow County. The contract calls for building the 2.2-mile section from N.C. 24 to U.S. 17 north of Jacksonville on new location and was awarded to S.T. Wooten Corp. of Wilson. In addition, two bridges will be constructed at Bell Fork Road and Country Club Drive. The project is scheduled to begin in October with completion in December 2005.

Names in the News

 Dr. James Causby of Smithfield, who is a member of the NCCBI board, was named executive director of the North Carolina Association of School Administrators. The appointment has led to Causby's decision to withdraw his name as a candidate for state superintendent of public instruction. He will serve in his current position as superintendent of Johnston County Schools until the winter break of the 2003-04 school year, then assume his new position with NCASA on Jan. 1, 2004.

 Ferrell Blount, North Carolina's representative on the Republican National Committee, has been elected chairman of the North Carolina GOP. He succeeds Bill Cobey, who stepped down to run for governor. Blount, 53, is a Pitt County farmer. Linda Daves of Charlotte, who had served as acting chair after Cobey's resignation, remains the party's vice chair.

 Brenda M. Blackburn, president of the Roanoke Valley Chamber of Commerce, was named Chamber Executive of the Year for North Carolina by the Carolinas Association of Chamber of Commerce Executives (CACCE). The announcement was made at the CACCE annual banquet in Myrtle Beach. Blackburn has led the Roanoke Valley Chamber for 12 years and has seen membership grow from 350 to 625.

 Joan Myers of Raleigh, president of the N.C. Electronics & Information Technologies Association (NCEITA), was named vice-chair and secretary of the Council of Regional Information Technology Associations at the group’s annual meeting in Pittsburgh. CRITA is a consortium of technology councils and associations that support and promote the IT industry in North America’s leading high technology communities. It represents more than 55 IT trade organizations that in turn represent more than 22,000 technology-related companies.

 Arthur H. Keeney III of Engelhard, president and CEO for East Carolina Bank, was appointed to the Northeastern North Carolina Regional Economic Development Commission by Gov. Mike Easley, who reappointed five others to the board. Reappointed were Ernest Burden of Plymouth, Jimmie Dixon Jr. of Elizabeth City, Mack Eugene Nixon of Elizabeth City, Jack A. Runion of Lake Gaston and Overton “Buck” Suiter Jr. of Ahoskie. The commission was created to facilitate economic development and tourism development in Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates, Halifax, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Tyrrell and Washington counties.

Washington Report
A monthly briefing on where things stand,
provided by the National Association of Manufacturers

Free Trade with Chile & Singapore: Lawmakers have approved legislation implementing U.S. free trade agreements (FTAs) with Chile and Singapore. The FTAs are victories for the NAM’s Strategy for Growth & Manufacturing Renewal (www.nam.org/renewal ) which rests on three main pillars: 1) promoting innovation and investment; 2) reducing the cost of producing in the U.S.; and 3) leveling the international playing field. The lack of an FTA with Chile is costing U.S. exporters $1 billion in annual export sales and 13,000 potential U.S. jobs. An FTA with Singapore will set a valuable precedent for future FTAs with the developing countries in Southeast Asia, where U.S. manufactured exports face tariff rates averaging as much as 30 percent.

Class Action Reform: The business community is united behind class-action reform bills (H.R. 1115/S. 274) that would curb trial-lawyer forum shopping by shifting most major class-action cases to federal court. The House approved H.R. 1115 in June. S. 274 will be on the Senate floor shortly after the Senate reconvenes in September. Supporters believe they are very close (within 3-4 votes) of reaching a filibuster-breaking majority of 60. Use the NAM’s Contact Congress Web site feature at www.nam.org/S274-HR1115 to urge your senators to support the Class Action Fairness Act.

Medicare: Medicare reform is one of Congress’ next big priorities, with both chambers having passed separate NAM-supported bills. Business coalitions are working to help ensure that the reforms are comprehensive, that Medicare payroll taxes don’t rise and any new drug benefits for seniors do not adversely impact employers, many of whom are sponsors of retiree-health benefits. House-Senate conferees are working to bridge the differences between the two bills this fall, but it will require considerable effort.

Asbestos Litigation: Sen. Orrin Hatch’s (R-UT) asbestos litigation reform bill S. 1125, passed by the Senate Judiciary Committee in July, has its flaws, but represents tremendous progress toward consensus. To date, asbestos litigation has forced almost 70 companies into bankruptcy, costing an estimated 60,000 jobs, a 25 percent decrease in the value of workers’ 401(k)s and untold losses for shareholders. There is no question that reforming the current system is a Herculean task, but the Senate should not miss the best opportunity in 20 years to fix this issue in the best interests of asbestos victims and American workers.  

Pension Reform: The business community—and the AFL-CIO—has unified around a proposal that would permanently replace the 30-year interest rate with a long-term corporate bond interest rate for pension funding purposes. The proposal was included in pension reform bill H.R. 1776. The Ways and Means Committee approved, by voice vote, a bill that would temporarily replace the 30-year Treasury rate with the long-term corporate bond rate for three years. Due to procedural problems with the markup, a second markup is likely early this fall, with floor action following quickly. Unless the broken rate is “fixed,” more and more companies will be forced to “freeze” or even terminate defined-benefit pension plans. On the Senate side, HELP Committee Chair Judd Gregg (R-NH) in July introduced S. 1550, which would replace the 30-year Treasury rate with a long-term corporate bond rate for a five-year period.

Overtime Pay: The Bush Administration has proposed a long-overdue update of regulations governing overtime pay that has evoked vigorous union opposition. The House narrowly killed an amendment to the Labor-HHS appropriations legislation that would have quashed the new rules before they are finalized. The Senate is expected to consider a similar measure upon their return in September. The old rules are so vague that they have become a favorite vehicle for class action lawsuits against employers that rarely address the plight of lower income workers for whom the law was designed. Most of the litigation under these outdated rules benefits trial lawyers. Clarity and certainty are needed when determining who is exempt from overtime and who is entitled—and an end to unnecessary and unproductive litigation.

Corporate Tax Reform: House Ways and Means Committee Chair Thomas (R-CA) introduced his long-awaited corporate tax reform bill, H.R. 2896, in July. Senate Finance Committee Member Hatch (R-UT) has introduced S. 1475, which includes international tax reforms similar to those in the Thomas bill, as well as several domestic corporate tax reforms. Both bills would repeal the extraterritorial income (ETI) regime. Hatch has characterized S. 1475 as a “concept” bill to influence House and Senate debate. Other ETI bills include the Crane/Rangel/Manzullo bill, H.R. 1769, which would repeal ETI and replace it with a lower tax rate on income from domestic manufacturing and production activities; and Sen. Hollings’ (D-SC) companion bill S. 970. Sens. Grassley (R-IA) and Baucus (D-MT) are working on a bill that would include both a tax break for income from domestic manufacturing and production activities and some international tax reforms.

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